Tullow announces A$1bn Hardman deal

ISEQ listed exploration company Tullow Oil has announced it is to buy Australian resource company Hardman for A$1.1bn (€862m).

The deal works out at A$2.02 (€1.58) per share, 54% higher than Hardman's Friday closing price of A$1.31 (€1.03).

Tullow has also offered a share alternative of just over a fifth of a Tullow share for each Hardman share, up to a maximum of 65 million new Tullow shares.

Hardman shares have fallen recently on lower oil prices and disappointing output from its only oil producing asset off Mauritania in Africa.

Tullow expects the deal to increases its total production by 6,000 barrels per day, and to boost its reserves by 30%.

It also adds 16 exploration wells to its 2006/07 exploration programme.